From testing, I have come to the conclusion that displace works like this:
Displace makes your ac go down and can go below the caps, so mobs can't hit you. Blur also does this. THe difference is that blur has a fixed amount while displace changes every time you are swung at ("take a hit"). Also, the spells aren't cumulative. Displace seems to override it.

Let's just say displace is like -100 ac bonus on first hit and goes down to -10 before wearing off and let's assume blur gives a -30 ac bonus. Let's also say that a smoke mephit can't hit a player at -130 ac. After around 8 hits, displace is almost out and i get hit until displace poofs. Then, my blur bonus makes me !hittable again. Is this suppose to happen?

It will be fixed in Toril 2.0.
Aremat group-says 'tanks i highly suggest investing 20 silver in training weapons from cm to cut down on the losing scales to shield'

Shevarash OOC: 'Muma on Artificial Intelligence - Muma OOC: 'someday the quotes really will just become AI and then i'll talk to the AI and be like, hey you come from me, but it will get angry at me and revolt and try to kill me or something heheheh. like in the movies''

This coming from the guy who wants to powerlevel his evil so he can spend 10 hours doing bronze citadel:)

Mysrel tells you 'have my babies'
You tell Mysrel 'u want me to be ur baby daddy?'
Mysrel tells you 'daddy? No, I think you have the terminology wrong'
You tell Mysrel 'comeon now we both know i would be the top'
Mysrel tells you 'can be where ever you want to be, yer still getting ****** like a drunken cheerleader'